Note 26 - Regulatory Matters

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 26 Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of common equity tier 1, tier 1, and total capital (as defined in the regulations) to risk weighted assets (as defined) and of tier 1 capital (as defined) to average assets (as defined). Management believes at  December 31, 2024 and 2023, each of the Company and the Bank met all of the capital adequacy requirements to which it is subject.

As of  December 31, 2024, the most recent notification from the FDIC, categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since the notification that management believe have changed in the Bank’s category.

Actual capital amounts and ratios for the Company (consolidated) and the Bank at  December 31, 2024 and 2023 are presented in the following table:

	December 31, 2024
											Minimum to be
						Minimum Required					Well Capitalized
						for Capital					Under Prompt
	Actual					Adequacy Purposes					Corrective Action (1)
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Common equity tier 1 capital to risk weighted assets
Consolidated (1)	$	443,833		9.91	%	$	201,441		4.50	%		N/A		N/A
Bank		449,497		10.18	%		198,743		4.50	%		287,074		6.50	%
Tier 1 capital to risk weighted assets
Consolidated (1)		452,903		10.12	%		268,588		6.00	%		N/A		N/A
Bank		449,497		10.18	%		264,991		6.00	%		353,322		8.00	%
Total capital to risk weighted assets
Consolidated (1)		559,002		12.49	%		358,118		8.00	%		N/A		N/A
Bank		504,857		11.43	%		353,322		8.00	%		441,652		10.00	%
Tier 1 capital to average assets
Consolidated (1)		452,903		8.65	%		209,532		4.00	%		N/A		N/A
Bank		449,497		8.69	%		206,832		4.00	%		258,540		5.00	%

⁽¹⁾ “Minimum to be Well Capitalized Under Prompt Corrective Action” is not formally defined under applicable banking regulations for bank holding companies.

	December 31, 2023
											Minimum to be
						Minimum Required					Well Capitalized
						for Capital					Under Prompt
	Actual					Adequacy Purposes					Corrective Action (1)
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Common equity tier 1 capital to risk weighted assets
Consolidated (1)	$	382,578		11.82	%	$	145,605		4.50	%		N/A		N/A
Bank		367,445		11.40	%		145,101		4.50	%		209,590		6.50	%
Tier 1 capital to risk weighted assets
Consolidated (1)		391,534		12.10	%		194,139		6.00	%		N/A		N/A
Bank		367,445		11.40	%		193,468		6.00	%		257,957		8.00	%
Total capital to risk weighted assets
Consolidated (1)		477,590		14.76	%		258,853		8.00	%		N/A		N/A
Bank		403,501		12.51	%		257,957		8.00	%		322,446		10.00	%
Tier 1 capital to average assets
Consolidated (1)		391,534		10.57	%		148,111		4.00	%		N/A		N/A
Bank		367,445		9.92	%		148,186		4.00	%		185,232		5.00	%

⁽¹⁾ “Minimum to be Well Capitalized Under Prompt Corrective Action” is not formally defined under applicable banking regulations for bank holding companies.

The Bank is subject to certain restrictions on the amount of dividends that it may pay without prior regulatory approval. The Bank normally restricts dividends to a lesser amount.

In addition, the Company must adhere to various U.S. Department of Housing and Urban Development (“HUD”) regulatory guidelines including required minimum capital and liquidity to maintain their Federal Housing Administration approval status. Failure to comply with the HUD guidelines could result in withdrawal of this certification. As of December 31, 2024 and 2023, the Company was in compliance with HUD guidelines.